Good morning.
No rescheduling yet.
Tune in to our webinar at Noon Eastern today: Aligning Banks and Cannabis Operators for the Next Phase of Industry Growth, with our partners at Shield Compliance. Join us on LinkedIn.
Let’s get to it.
-JB, JR, ZH
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💡 What’s the big deal?
SCHEDULE 3
Trump address rescheduling at the White House 🎤
Driving the news: Last week, numerous media outlets reported that President Trump will finally issue an Executive Order that would reclassify cannabis from the most restrictive Schedule I to the far less restrictive Schedule III.
Some outlets reported that the EO would hit as early as Monday afternoon. While that didn’t come to fruition, Trump did directly address cannabis reform from the Oval Office.
What they’re saying: “We are considering that, yeah,” Trump said.
“A lot of people want to see it — the reclassification — because it leads to tremendous amounts of research that can’t be done unless you reclassify. So we are looking at that very strongly.”
Why it matters: That’s a pretty bullish statement on rescheduling from the president.
But the longer the order goes unsigned, the more time anti-legalization groups and the right wing influencer-and-media nexus can get in front of him and fear-monger about cannabis.
Smart Approaches to Marijuana is already on a full-court press, with its chief polemicist, Kevin Sabet, appearing multiple times on Fox News over the weekend which we all know Trump watches.
The Wall Street Journal editorial board has published at least three anti-cannabis editorials in the last few weeks, ranging from a letter from anti-cannabis researcher Bertha Madras to a screed against gummies sending consumers to emergency rooms.
Other right-wing outlets have published anti-cannabis editorials in the last few days, and right-wing influencers are peddling Reefer Madness claims about violent crime, psychosis, and scromiting, along with whatever social ill they blame cannabis for.
Rescheduling has a chance to cleave the Republican Party in two, if Trump follows through.
Speaker of the House Mike Johnson is against the move, per reports from The Washington Post. The Post also reported on Monday that Trulieve $TRUL.CSE ( ▲ 12.58% ) CEO Kim Rivers and Scotts Miracle-Gro CEO Jim Hagedorn were in the room with Trump on Friday when he made the decision to move ahead with rescheduling.
On insurance Trump reportedly wants to push Medicare to reimburse CBD as well.
Remember, Trump in September posted a video from The Commonwealth Project, a cannabis and CBD health company.
Zoom in: Cannabis stocks sold off on Monday, as $MSOS ( ▲ 20.56% ) slipped 7%.
Trump also signed an executive order on Monday declaring fentanyl a weapon of mass destruction, so, we guess there’s that.
What’s next: Some outlets report the executive order could come as soon as this week. Others say January. We’re not counting our chickens before they hatch.
And we’ll reiterate that executive order-to-implementation could take time as well. Remember, the Biden Administration already tried to reschedule, but the effort stumbled in a courtroom battle earlier this year, a full three years after Biden directed federal agencies to do it.
That could happen again. But now that two presidents of two different parties want the same thing in hyper-partisan 2025, it’s hopefully a bit less likely.
-JB
📣 Quotable
“I was encouraged to see the Drug Enforcement Administration first move to reschedule marijuana under President Biden, and I urge President Trump to follow through on this effort,” New York Sen. Kirsten Gillibrand said in a statement.
“Common sense tells us marijuana should not be in the same category as deadly drugs like heroin, and reclassifying it is a long overdue and small step forward to create economic opportunity, support research into marijuana’s medical benefits, and increase public safety. However, there is still far more work that must be done. I will continue to advocate for the full descheduling of marijuana and for expunging the records of Americans convicted of marijuana possession.”
Our very own Jeremy Berke will interview Gillibrand live at The Highrise in New York City on January 29, in partnership with Gotham.
It’ll be timely, and it’s a pivotal moment for federal cannabis reform. You’ll want to be in the room that matters.
⏩ Quick hits
SCOTUS shuts down cannabis scheduling challenge 🧑⚖️
The Supreme Court announced on Dec. 15 that it would decline to take up a case out of the First Circuit of Appeals that could have subverted cannabis' status under the Controlled Substances Act. Canna Provisions Inc. et al. v. Bondi argued that the Constitution's Commerce Clause applies to cannabis, especially since the federal government allows states to operate legal markets. The case lost in the First Circuit and now with the Supreme Court's rejection the case appears to be over.
Jamaican government watches rescheduling 👀
Federal Jamaican officials are watching rescheduling closely and say that if the US reschedules, it could unlock the global cannabis industry. “For years, one of the biggest external constraints on Jamaica’s cannabis industry has been the way it is treated under US federal law,” one official said. Read more.
🚀 Deals, launches, partnerships
Canopy Growth acquires MTL Cannabis 📈
Canopy Growth $CGC ( ▲ 10.24% ) will acquire MTL Cannabis in a $179 million cash-and-stock deal. The combined company will be the largest medical cannabis business in Canada and will beef up production for export markets.
Texas' largest cultivation site opens for business 🌱
A 75,000-square-foot grow site officially opened on Dec. 11 in Balstrop, Texas, which is southwest of Austin. The facility is currently the largest medical grow site in the state, which recently approved an expansion of its nascent medical cannabis market.
📰 What we’re reading